Definition: Government control of NPIs

Category: Frascati Manual

Government control of NPIs is typically determined by the use of the following five indicators of control:

1. The ability to dictate the appointment of officers or management boards. 
2. The ability to dictate other provisions, allowing the government to determine significant aspects of the general policy or programme of the NPI, such as the right to remove key personnel or to veto proposed appointments, to require prior approval of budgets or financial arrangements by the government, or to prevent the NPI from changing its constitution or dissolving itself. 
3. The presence of contractual agreements, giving rights to impose conditions, such as those cited above. 
4. The degree and type of financing by government, to the extent that this may prevent the NPI from determining its own policy or programme. 
5. The existence of risk exposure, if a government openly allows itself to be exposed to all, or a large proportion of, the financial risks associated with an NPI’s activities. http://ec.europa.eu/eurostat/ramon/statmanuals/files/Frascati-Manual-2015_EN.pdf